Updated
The misconception
“Closing old credit cards will improve your credit score.”
The explanation
Closing old accounts can actually reduce your total available credit and shorten the average age of your credit history, both of which may lower your score. If an older card has no annual fee, keeping it open — even if you rarely use it — generally helps your profile.
An account is part of a wider picture
Before looking at an account in isolation, consider the broader credit profile. Available credit, balances, and account history are connected; a change in one part can affect how the profile is understood.
Avoid a one-rule approach
A general explanation cannot decide whether a particular account is right for you. Fees and your individual circumstances also matter. Our resources explain credit concepts without making an account recommendation.
Explore the factors behind a credit score or return to our resource library.
General educational information only. Read the General Disclaimer.